The traditional and safest way to finance others business is always club finance. That is financing one business by lot of people, so that risk is diversified between numbers of people. This definitely has a drawback that return is also divided among all but still risk becomes lesser. Funding through share capital probably is best classic example of the same. Where a person called promoter introduce an idea and forms a business called company and invites people to invest in his business for sake of stake. However this need a strong reputation in market as well as the idea must be so attractive in terms of return as well future forward oriented. But what happens when a person having an attractive idea but without a strong Goodwill and reputation in the market. How to than materialized the idea? Some one could say by borrowing from financial institution, but too need mortgage, which is also not available. In that case you need an angel (Investor) who is ready to invest in your business with Risk involved, without considering your market Reputation and Goodwill and even without any security, but just on the basis of your idea and enthusiasm. This we are going to discuss in this article known as Venture Capital Financing”.

Keywords: Venture Capital Finance, Angel Investor, Return on Investment, Risk Involved.